08/04/2012

Bi-Partisan Senate Legislation Would Require SEC and Other Independent Agencies to Conduct Cost-Benefit Analysis of Regulations

Bi-partisan Senate legislation would require the SEC,
CFTC and other independent federal agencies to analyze the costs and benefits
of new regulations and tailor new regulations so as to minimize unnecessary
burdens on the economy. The Independent Regulatory Analysis Act, S 3468, was
introduced by Senators Rob Portman (R-OH), Mark Warner (D-VA) and Susan Collins
(R-ME). Senator Portman said that, while independent federal agencies exercise
vast power over financial services and other sectors of the economy, they are
exempt from conducting a cost-benefit analysis of even major regulations. S 3468
would close this loophole for independent agencies by authorizing the President
to bring them within the same regulatory review framework that applies to
executive agencies. Senator Warner noted that basic cost-benefit principles
should apply to all federal regulators, including independent agencies.

Thus, under the legislation, the SEC and other
independent agencies would be required to evaluate costs and benefits of new regulations and adopt the least burdensome
regulatory approach.

Comments

Bi-Partisan Senate Legislation Would Require SEC and Other Independent Agencies to Conduct Cost-Benefit Analysis of Regulations

Bi-partisan Senate legislation would require the SEC,
CFTC and other independent federal agencies to analyze the costs and benefits
of new regulations and tailor new regulations so as to minimize unnecessary
burdens on the economy. The Independent Regulatory Analysis Act, S 3468, was
introduced by Senators Rob Portman (R-OH), Mark Warner (D-VA) and Susan Collins
(R-ME). Senator Portman said that, while independent federal agencies exercise
vast power over financial services and other sectors of the economy, they are
exempt from conducting a cost-benefit analysis of even major regulations. S 3468
would close this loophole for independent agencies by authorizing the President
to bring them within the same regulatory review framework that applies to
executive agencies. Senator Warner noted that basic cost-benefit principles
should apply to all federal regulators, including independent agencies.

Thus, under the legislation, the SEC and other
independent agencies would be required to evaluate costs and benefits of new regulations and adopt the least burdensome
regulatory approach.